Ban on lithium exports a boost for beneficiation

Amendment of Mines and Mining Act On Course- Minister Winston Chitando - greatdyke news

Zim Now Writer

The government has explained the reason behind the ban on the export of raw lithium is because its wants to cash in on value addition.

This comes after the mining industry claimed that the country has been losing billions to foreign companies via mineral proceeds.

The country has reportedly lost $12 billion through illegal trade involving multinational companies as those in the West took advantage of its lithium reserves.

On December 20, the Ministry of Mines and Mining Development in a directive published under the nation’s Base Minerals Export Control Act said that the move was made to “ensure that the vision of the President to see the country becoming an upper-middle income economy has been realized.

Mines Minister Winston Chitando following the export ban said: “No lithium-bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country except under the written permit of the Minister.”

The directive excludes mining companies which build processing plants. Deputy Mines Minister Polite Kambamura also stated that if Zimbabwe continues to export raw lithium, then it shall go nowhere.

According to Reuters, Chinese mining giants and lithium-ion battery material manufacturers Zhejiang Huayou Cobalt, Sinomine Resource Group and Chengxin Lithium Group acquired several lithium mines.

They have bagged projects worth a combined $678 million in Zimbabwe and are at various stages of developing mines and processing plants. These companies are exempted from the ban.

Lithium is the new gold as the world shifts to clean energy, especially in the field of electric vehicles. It is a necessary metal needed to build high energy-density rechargeable batteries.